BY Fraser Tennant
In a deal designed to expand its wireless connectivity and internet of things portfolio, US multinational semiconductor company Texas Instruments will acquire smart homes mixed-signal chipmaker Silicon Labs for approximately $7.5bn.
Under the terms of the definitive agreement, Texas Instruments will acquire Silicon Labs for $231 per share in an all-cash transaction – its biggest acquisition since the $6.5bn deal for National Semiconductor in 2011.
The combined company will create a global leader in embedded wireless connectivity solutions by combining Silicon Labs’ strong portfolio and expertise in mixed signal solutions with Texas Instruments’ leading analogue and embedded processing portfolio and internally owned technology and manufacturing capabilities.
“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy,” said Haviv Ilan, chairman, president and chief executive of Texas Instruments. “Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and intellectual property, enabling greater scale and allowing us to better serve our customers.
“Texas Instruments' industry-leading and internally owned technology and manufacturing is optimised for Silicon Labs' portfolio, and will provide customers dependable supply worldwide,” he continued. “I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments’ shareholders.”
The transaction – which is expected to generate $450m in annual manufacturing and operational synergies within three years post-close – has been unanimously approved by the board of directors of both companies.
“Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way,” said Matt Johnson, president and chief executive of Silicon Labs. “Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices.”
The transaction is expected to close in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions, including approval by Silicon Labs stockholders.
“The opportunity ahead is significant for both Texas Instruments and Silicon Labs,” concluded Mr Johnson. “By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation.”
News: Texas Instruments strikes $7.5 billion deal for Silicon Labs to boost wireless footprint